May 24, 2017

WCRI Unveils Better Tool for Understanding Growth of Medical Prices in Workers’ Comp

CAMBRIDGE, MA – Over recent years the costs of medical treatment per claim for workers’ compensation injuries have been growing rapidly, in some jurisdictions due to growing medical prices. To help policy and business decision makers better understand this growth, the Workers Compensation Research Institute (WCRI) has created the Medical Price Index for Workers’ Compensation, Third Edition (MPI-WC).

What makes the MPI-WC so unique is that unlike the Consumer Price Index (CPI), the MPI-WC is tailored specifically to focus on the medical care that injured workers receive, which is different than what is used in the CPI. Without this information, stakeholders will not be able to accurately understand how prices in their state compare with other states and know if prices in their state are rising rapidly or relatively slowly. They also will not know if the reason for rapid growth in their state is part of a national phenomenon or whether the causes are unique to their state and hence, subject to local management or reform.

The MPI-WC tracks medical prices paid in 25 states from calendar year 2002 through June 2010 for non-hospital, non-facility services, which means professional services billed by physicians, physical therapists, and chiropractors. The medical services fall into eight major groups: evaluation and management, physical medicine, surgery, major radiology, minor radiology, neurological testing, pain management injections, and emergency care.

The 25 states included in the MPI-WC are: Arizona, Arkansas, California, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, and Wisconsin.

Click on the following link to view the index (PDF):
http://www.wcrinet.org/studies/public/books/wcri_med_cpi_3_final.pdf

Source: WCRI

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